Backed by a brass section and extra singers, Damon Albarn, Graham Coxon, Dave Rowntree and Alex James closed the BT London Live celebration concert with a two-hour show.
The band had been supported by Bombay Bicycle Club, New Order and The Specials, before taking to the stage and opening with four tracks from their 1994 album Parklife.
Copyright: PA Images Ian West/PA Wire
Special guests included Khyam Allami, who played the oud on 'Out of Time', which Albarn dedicated to those athletes who were unable to visit London for the games because of repression in their home countries.
"That was just an incredible experience!!!! #blurhydepark2012," said Allami on Twitter after the show.
Phil Daniels reprised his spoken-word vocals from hit single 'Parklife' and was joined by Harry Enfield dressed as a traditional British tea lady.
The comedian stayed with the band for their performance of the following 'Colin Zeal'.
Other non-singles played by the band included 'Chemical World' B-side 'Young & Lovely' and 13's 'Caramel'
Between 'Advert' and 'Song 2', Albarn saluted the lack of commercials during the TV coverage of the games and the reduced visibility of sponsors in the Olympic sports arenas.
After ending the main set with 'This Is A Low', Blur closed the set with 'Sing', new track 'Under The Westway', 'End of a Century', 'For Tomorrow' and 'The Universal'.
The full Blur Hyde Park Olympic Closing Ceremony set-list was as follows:
1. 'Girls & Boys'
2. 'London Loves'
3. 'Tracy Jacks'
6. 'Coffee & TV'
7. 'Out of Time' (with Khyam Allami)
8. 'Young & Lovely'
9. 'Trimm Trabb'
11. 'Sunday Sunday'
12. 'Country House'
13. 'Parklife' (with Phil Daniels)
14. 'Colin Zeal' (with Harry Enfield)
17. 'Song 2'
18. 'No Distance Left to Run'
20. 'This Is a Low'
22. 'Under The Westway'
24. 'End of a Century'
25. 'For Tomorrow'
26. 'The Universal'